M-Pesa is arguably Africa’s biggest mobile money payment service. The payment service first made its name in Kenya, where its headquartered but has since spread its wings to many other countries. Namely, these include Ethiopia, Tanzania, Mozambique, DRC, Lesotho, Ghana, Egypt, Afghanistan, and South Africa.
At the front desk and acting as the first brand ambassadors of M-Pesa are its agents. The agents are the people who are responsible for interacting with M-Pesa customers whenever they visit the retail booths to deposit funds, withdraw funds or perform any other task that they deem necessary.
How Do M-Pesa Agents Work
The core function of M-Pesa Ethiopia agents is to help new customers register accounts as new M-Pesa users, accept funds for deposits, give out cash against withdrawals, as well as help customers complete other tasks that they may need but don’t have the know-how of how to perform the tasks. It’s important to note however that M-Pesa agents are registered in different ways which are as follows.
- Register as an Agent via Standard Outlet: To become an agent via a standard outlet, you need to apply directly to Safaricom to become one. The key requirements needed to successfully apply for a standard outlet agency are as follows:
- You must have a registered limited company with three or more outlets which can offer M-Pesa services
- The company must have been operational for 6 or more months
- You need to invest a minimum of Ksh 100.000 float per outlet and another Ksh 100.000 for SIMEX (Sim Replacement Cards)
- Provide certified copies of a Certificate of Incorporation, Form CR12 or an equivalent form valid for the previous 3 months, copies of IDS of Office Administrators and Primary Assistants, completed agent application forms, copies of VAT and PIN certificate
- List of outlets and business permits for each of the outlets
- Bank statements covering the last six months
- An original police certificate of good conduct.
- Register via an Authorised M-Pesa Dealer: For those who don’t have many resources to register via a standard outlet, they can register via an authorised M-Pesa dealer. To go this route, you need to find a dealer to work with. Afterwards, you need to choose between operating as an aggregated line or a non-aggregated line.
- Non-Aggregated Line: The latter sees you operate an M-Pesa line that you don’t have much control; over as the principal agent (dealer you registered with) has much power. It is the principal agent who determines the commission you get usually between 60% to 80% but can be lower. The principal-agent also determines your float.
- Aggregated Line: If the non-aggregated line terms aren’t favourable to you, you can choose to operate as an aggregated line sub-dealer. If you go this route, you will have 100% control of your float as well as your line which is registered directly with Safaricom. Your commissions also come directly from Safaricom (80% on withdrawals and deposits with the other 20% going to the principal agent). The requirements you need to satisfy as an M-Pesa line sub-agent include maintaining a minimum float of Ksh 30.000 and providing copies of the national ID, Certificate of Good Conduct, and Business Name.
How Are M-Pesa Agents Paid
M-Pesa agents are paid by Safaricom. Agents are paid on a commission basis depending on the type and volume of transactions they complete. The commission paid is also dependent upon whether the customer is registered or unregistered. Completing transactions for unregistered customers attracts a higher commission fee than that of registered customers.
M-Pesa agents are only paid for deposits and withdrawal transactions. Typically, M-Pesa agents receive their commission at the end of the month. However, during the month the agents can check their commission balance when they open the M-Pesa app and head over to the ‘Show my Commission Balance’ tab.
Becoming an M-Pesa agent is a highly lucrative business adventure, especially for those who reside in areas with huge numbers of human traffic. For each deposit or withdrawal transaction, an agent completes, a commission is instantly paid. However, prospective agents ought to note that there are some requirements they need to satisfy as highlighted in this article.